Apple tipped to introduce low-cost tablet computer in 2010

Apple will enter the low-end computer market by selling a tablet device from the first quarter of 2010, with chief executive Steve Jobs reportedly giving the project the green light.

New rumours also suggest the company is working with major record labels in a new project to promote the sale of full albums, rather than individual songs, on its popular iTunes store.

The reports, which first emerged last week from AppleInsider, but have also been confirmed by The Financial Times, claim the tablet computer is “cemented” in the 2010 line of Apple products.

“It’s a portable entertainment device,” the FT quoted one entertainment executive as saying. “It’s going to be fabulous for watching movies.”

A “tablet” computer is similar in size to a laptop or netbook computer, but comes with a touchscreen or graphics tablet that allows the user to control the screen with their finger, or an accompanying device such as a pen. It also comes without a keyboard or lid.

The device is reportedly built with a 10-inch touch screen, placing it far larger than the iPhone or iPod Touch but smaller than its range of MacBook computers. It will “probably” come without phone capabilities, but will be able to access wireless internet at any time.

The reports suggest built-in 3G wireless capabilities, an interesting claim considering recent comments from AT&T chief executive Randall Stephenson that indicated his company would not exclusively offer the iPhone in the US forever. There have also been reports suggesting Apple is discussing telecommunications deals with US telco Verizon.

Additionally, the AppleInsider report claims the tablet computers will hold custom-made chips instead of Intel’s processors, which have been used in the MacBook computers, while the device will be able to use apps similar to the iPhone and iPod Touch.

The device is “expected to retail for somewhere between the cost of a high-end iPhone and Apple’s most affordable Mac notebook” according to the report, placing it around $US600 to $US800.

Tablet computers have been produced by computer giants such as Hewlett-Packard, but they haven’t been able to capture the attention of the industry as much as netbooks.

But in a twist to the announcement, the FT quotes record industry executives as saying the device’s larger screen will be used to offer new products, such as interactive booklets and liner notes that come with the purchase of full albums.

Record companies are reportedly disappointed with the sales of albums, as the iTunes store empahsises the sale of individual tracks. Additionally, the FT quotes Hollywood executives as saying they would look at giving more content to the iTunes store if the device goes ahead.

Game developers are also reportedly excited about the new device, saying it could help show off more intensive graphics.

The new device could also be an attack against Amazon’s Kindle eReader device for books, which has experienced high popularity in the US and has even been pegged as the saviour of the newspaper industry.

The rumours come after Apple chief executive Tim Cook said earlier this year that Apple would not be entering the netbook market, claiming it would not sacrifice quality for lower prices.

But talk of a low-end Apple computer has been on the table for some time, with Gene Munster analyst Piper Jaffray writing earlier this year that a device would be released in the early 2010 schedule.

“Apple will likely leverage its multi-touch patents to differentiate its product from the typical netbook,” Munster said in a statement.

“We are anticipating a new category of Apple products with an operating system more robust than the iPhone’s but optimised for multi-touch, unlike Mac OS X.”

The tablet computer rumour was hoped to be confirmed during last month’s World Wide Developer’s Conference, but the company instead introduced the new iPhone 3GS and a new range of MacBook models.

Instead, the tablet device is expected to be announced in September, when Apple traditionally announces new iPod models. The iPod Touch is also expected to be given an upgrade, including the introduction of a camera and microphone.